A Disadvantage of an Autonomous Project Organizational Structure Is That

question 64

True/False

A disadvantage of an autonomous project organizational structure is that when things are slow, individuals have a tendency to stretch out their work to fill up the time available or if they do not have any tasks to do for temporary periods, their unapplied time is still a cost to the company.

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Definitions:

Break-Even Point

The financial point at which total revenues equal total costs, resulting in no net profit or loss.

Variable Costs

Charges that directly correlate with the volume of production or sales, such as direct labor and materials required for production.

Fixed Costs

These are business expenses that remain the same regardless of the level of production or sales, such as rent or salaries.

Break-Even Point

The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.